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They are asking if I will be in the area in the near future OR, if not, if I can set up a short phone conversation.

What are the major pros and cons of spending the $$$ to fly out for a short meeting or saving the cash and talking over the phone?

Pros of spending $$$: demonstrates interest and gets you face time.

Cons: requires spending money

In the end, if you wanna be employed, do what it takes. If you can find a way to pay to fly out there, do it. In about 50 minutes I'll be walking into an interview I arranged that way. Trying to find a Starbucks right now to kill time and take a piss.